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External Influences on Business Activity Exam Practice Paper 1

Economic Issues Exam Practice ✍🏽

Ymix is a large cement company based in country B. Ymix is in the private sector. It supplies builders in country X with 20% of the cement they need and the rest is imported.

Ymix now has eight cement factories but plans to close two of them. This will threaten 2000 employees with redundancy.

The Managing Director said: ‘I blame the appreciation of country X’s exchange rate. The Government should help private sector businesses.’

(e) Do you think the government should help private sector businesses? Justify your answer. [6]

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Check out Unit 1 Business Activity, Topic Guides, Questions and Solutions